WINONA, Minn. (KTTC) -- Supply chain issues are everywhere we go and for at least a year now, the nation has been impacted by a chip shortage; which is creating a shortage of popular electronic devices.
During the pandemic, some factories that make semi-conductor chips were closed. In addition, a factory fire at a major Japanese plant contributed to the chip shortage.
So, people who spent more time at home during the pandemic purchased new electronic devices and even new cars.
All these things have put more pressure on companies like Watlow Electronic Manufacturing Co. in Winona.
"If you look at electronics today, almost everything that we use has some type of computer chip from the iRobot, the vacuum, to your cellphone, to most kids toys," said Jeff Harrington, Director of Operations.
Watlow creates the technology that helps make those important chips.
"Our products create the thermal environment for chip making. So, we sell these to companies that make chambers to process chips," said Stan Breitlow, Chief System Designer.
He said those chambers can create hundreds to even a thousand chips at one time.
The company is feeling the extra demand for more chips.
"The semiconductor market has really caught on over the last few years but really started going over last year and this year. In the beginning, you can really see that ramp starting to really ramp up significantly," Harrington said.
"That's an increase, probably this year of 70 percent. And over half of those chambers are going to use Watlow for their thermal needs," Breitlow said. "We need to increase our production of these (thermals) at least 50 percent to meet our current demand."
The company is now wanting more hands-on deck.
"We're expanding our manufacturing base. We're opening our factory up to a 7-day operation. We're offering flexible shifts," Harrington said.
Consulting firm, Alix-Partners, predicts the chip shortage could cost the global auto industry $210 Billion in sales this year. The shortage could run into 2023.
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November 10, 2021 at 11:28AM
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Winona electronic manufacturer boosting production to battle chip shortage - KTTC
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